A Stock Market Crash That Reduces the Value of an Individual's

question 116

Multiple Choice

A stock market crash that reduces the value of an individual's trust fund would tend to

• A)increase her supply of labor if the substitution effect outweighs the income effect
• B)decrease her supply of labor if the substitution effect outweighs the income effect
• C)have no impact on her labor supply decision
• D)increase her supply of labor
• E)decrease her supply of labor

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Definitions:

Dependent Variable

In experimental research, the variable that is observed and measured to determine the effect of the independent variable, reflecting outcomes or changes.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.

Internal Validity

The extent to which a study can demonstrate that a causal relationship exists between variables, free from external influences.

Construct Validity

The extent to which a test measures what it claims to be measuring, in the context of psychological testing and research.